Tesla Motors, Inc. (TSLA) has surpassed Toyota Motor Corp. (TM) to become the largest employer in the automobile industry in California, according to media reports. The electric carmaker employs over 6,000 people in the state, compared with around 5,300 employed by Toyota.
Moreover, Toyota has plans to shift around 2,300 of its California-based workforce to Texas in the next 3 years, while Tesla will increase its workforce by over 500 this year. This will make Tesla the employment leader by a significant margin.
The electric carmaker has its headquarters in Palo Alto and assembly plant in Fremont in California. As a result, 90% of its global employee base of 5,800 was based in the state in the beginning of the year. The company also recently leased a parts distribution facility in Lathrop, CA, to expand its operations in the state. Tesla is hiring engineers and technicians for 32 vacancies in the facility, which was earlier a parts-distribution center of Chrysler’s Mopar unit. Tesla has already received building permits to modify the 431,000-square-foot industrial facility.
While many companies are moving away from California due to its high labor and energy costs and government regulations, Tesla is expanding in the state. Over the last 3 months, Tesla has leased over 625,000 square feet of Californian real estate.
Tesla designs and manufactures electric vehicles and electric vehicle powertrain components for partners such as Toyota and Daimler AG (DDAIF).
Tesla currently carries a Zacks Rank #4 (Sell). Volkswagen AG (VLKAY), a Zacks Rank #1 (Strong Buy) stock, is currently performing well in the automobile industry.Read the Full Research Report on TM
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